And, China’s economy is finally stabilizing at these levels. University of the West Indies. Policies to increase economic growth. Accounting for growth is an attempt to quantify factors contributing to economic growth as shown in Table 17-1. Earth is comprised of 75% water, the rest is comprised of land, with a majority of it used for agriculture. The bottom 80 percent of American workers saw inflation-adjusted declines in wages in each of 2010, 2011, 2012, and the first half of 2013. Demand for dollars: This factor can be tied. The great rise of inequality Let us start by examining the ongoing trends in income and wealth. Supply factors for Economic Growth, Demand & Efficiency Add Remove This content was COPIED from BrainMass. The evolution of economic growth theories can be drawn back from Adam Smith's book, Wealth of Nation. branches of economics two. Keep in mind that a changing in consumption or government spending doesn't lead to more output in the long run if there is not an. The major demographic factor of population growth, reflected by U. The efficiency factor is the sixth ingredient of economic growth. de economist 126, nr. Demand factor: to achieve the higher production potential created by the supply factors, households, businesses, and government must purchase the economy'sexpanding output of goods and services. Nominal growth is defined as economic growth including inflation, while real growth is nominal growth minus inflation. Population. In the long run, though, supply plays the primary role in determining economic potential. production process of other sectors3; and (ii) indirectly, raising total factor productivity by reducing transaction and other costs thus allowing a more efficient use of conventional productive inputs. Demand refers to how much consumers want to buy the product. There are several factors affecting economic growth, but it is helpful to split them up into: Demand-side factors (e. Once it’s clear which supply-side or demand-side factors are at play, local areas can move on to identifying the policy options available to them to solve each. Here the price of a product remains relatively stable, creating a predictable market around which businesses can plan their activities. Natural resources C. While most of our analysis centered. Law Of Demand: The law of demand states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. 3 percent in 2018 to 5. The growth in the U. In other words, it is the number of births for every 1000 people in the country. It’s an indicator for economic performance relative to size. 1 Growth Accounting 9 2. Definition of demand factor: Condition that determines a consumer's ability and influences his or her willingness to purchase a product. China's transition has taken growth rates from more than 12 percent per year in 2010 to less than 7 percent by 2017. Birth Rate; It is the average number of the children born in a country compared to the rest of the population. By expanding these industries, both the economy and the job market can grow. Feb 15, 2016. 3 percent in 2018 to 5. ) can help to increase and sustain economic growth. Japanese Industrialization and Economic Growth. A Study on the Factors of Regional Competitiveness 2-2 than destroys opportunities for others and trade between nations is well known not to be a ‘zero-sum game’. Definition of demand factor: Condition that determines a consumer's ability and influences his or her willingness to purchase a product. Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level of demand for consumer goods. Some economists just do not believe that the finance-growth relationship is important. By sustaining hope for improvement, it relieves the pressure for policies aimed at more equitable distribution of wealth. 5% in 2015, with only a limited recovery in 2016 of 1. The recent rises in energy and commodity prices are partly explained by the rapid growth in demand from China and India. A single important case that demonstrates sanctions’ potential allows advocates to argue that their cause is more akin to the success than to the. The AD-AS Model 5 The Aggregate Demand Curve nThe aggregate demand (AD) curve shows combinations of price levels and real income where the goods market is in equilibrium. 18) However, economic growth does not necessarily eliminate poverty. Improved economic growth raises the standard of living. When the incomes of the people fall, they would demand less of a good and as a result the demand curve will shift downward. The efficiency factor is the sixth ingredient of economic growth. USAID, in conjunction with the Government of Afghanistan, is actively supporting export-driven economic growth across a wide range of sectors. Some examples of economic growth are as follow:- Supply Factors These factors affect the value of goods and services supplied in an economy. Concluding thoughts Keywords technology adoption. Global demand is slowly recovering, thanks to the United States, China, and the T he Southern Africa economic outlook reviews macroeconomic conditions in 12 countries. This is based on the fact that the company is exposed to a wide range of market concentration risks. WASHINGTON, DC – The Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group predicts full-year 2019 and 2020 real GDP growth to slow to 2. In economics, we have two forces: the producer, who makes things, and the consumer, who buys them. An increase in total spending in the economy. By sustaining hope for improvement, it relieves the pressure for policies aimed at more equitable distribution of wealth. Mahalia Jackman. Interest Rates and Economic Growth: Are They Related? 1. Here the price of a product remains relatively stable, creating a predictable market around which businesses can plan their activities. 6% in 2014, demand growth is expected to remain restrained at 0. This is based on a hypothetical sequence of events where an increase in demand will, in effect, stimulate an increase in supply (within resource limitatio. 1 DEMAND AND SUPPLY AS FACTORS DETERMINING ECONOMIC GROWTH Ton van Schaik en Theo van de Klundert* De Economist, 126, 3, 1978, pp. The government factor is that government will offer different things for businesses to hopefully boost the economy e. Introduction Ethiopia has experienced strong. In summary, investment, the specialization of natives, the complementarity between natives and immigrants, and the technological response of firms are the local economy’s margins of response to immigration. "External demand also weighed on new business growth. van de klundert and a. economic growth. The eco-industry or environmental economy is small but rapidly growing segment of the overall economy. Only if its aggregate demand increases B. In 2011, recovery in world demand for diamonds led to robust economic growth. The government is powerful and therefore there is a majority of Chinese have not raise an objection to this system. The paper reviews and assesses empirical studies on the causal relationship between energy and growth, and energy demand in Ghana over the years. Moreover it seems to be assumed that this level of overall economic growth will continue indefinitely and that unless we in “The West” get involved in it, we will live to regret it. Find out about current and projected economic growth in Indonesia and compare the data with other developing countries in Southeast Asia. As William Rees has said: 'economic growth is a major instrument of social policy. Economic growth is one of the most important indicators of a healthy economy. Cyclical fluctuations in national output and external trade. But for growth to be sustained and inclusive, its benefits must reach all people. S may lead to a “fear factor” incorporated in such “global imbalances”. Environmental factors. The evolution of economic growth theories can be drawn back from Adam Smith's book, Wealth of Nation. As a result, the theory supports expansionary fiscal policy. The economy suffered a setback with a low growth rate of 5 per cent during 2011-12, owing mainly due to global recession compounded by domestic factors, such as a delay in the clearance of projects, inflation and high interest rates. four supply factors, one demand factor, and one efficiency factor. Effects of Devaluation A significant danger is that by increasing the price of imports and stimulating greater demand for domestic products, devaluation can aggravate inflation. Refer to the above list. Environmental and institutional factors VI. Sources of Frontier Growth 9 2. Demand and supply. Growth creates jobs Economic growth generates job opportunities and hence stronger demand for labour, the main and often the sole asset of the poor. All these factors add to the downside risks and may lead to a more severe growth slowdown following the recent oil price shock. Itau Economic Research forecasted GDP growth of 2. In light of this, it argues for a range of policies that would increase both equity and economic wellbeing. The journal's prime objective is to provide an international review of the state-of-the-art in economic modelling. Japanese Industrialization and Economic Growth. Only if its aggregate supply increases C. The growth in electricity demand has been significantly slower than GDP growth for decades. Today, as never before in the past, economic growth should be within the reach of any country anywhere in the globe. Demand-side explanations of economic growth have experienced periods of popularity but have become increasingly uncommon in recent years. The rebalancing of economic activity from commodity investment to other activities is well advanced, facilitated by monetary and fiscal policies, currency depreciation, and flexible labour and product markets. 4 percent in the second quarter of 2019 from a preliminary estimate of 0. Law Of Demand: The law of demand states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. , economic growth) will cause an increase in average interest rates in an economy. More labor input is one source of growth. Job Prospects In general, job opportunities should be good. Like most industries, the airline industry is impacted by the economic cycle’s peaks and troughs. If the growth rate is 10% it will only take 7. Another factor that has been identified is the detrimental effects to competitiveness of the economic protectionism and the import-substituition policies that were followed after World War II to the 1970s (Yap, et al. Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. Consequently, investments that reduce the cost of moving goods to and from markets (via improvements in reliability, transit times, service levels, etc. de economist 126, nr. Demand factor: to achieve the higher production potential created by the supply factors, households, businesses, and government must purchase the economy'sexpanding output of goods and services. Two main environmental factors that have led to the growth of tourism:. This implies that unemployment will rise (if g < n) or fall (if g > n) indefinitely over time. China’s transition has taken growth rates from more than 12 percent per year in 2010 to less than 7 percent by 2017. The level of urbanization is considered as an index of economic development. Our objective is to make economics more relevant for pharmacy students. Refer to the above list. Growth with Overlapping Generations Problems of In–nity Problems of In–nity I Static economy with countably in–nite number of households, i 2 N Countably in–nite number of commodities, j 2 N. Investment could produce more capital, but because of diminishing marginal factor productivity and the existence of fixed factors such as land, population growth would always dominate economic growth, keeping most of the population at a subsistence level of income. 7 percent in Texas to 0. Adam Smith's model of economic growth is more or less available in the different parts of Smith's well reputed book "Wealth of Nations" written in 1776. Ansley BennettLanier Middle School 2. World Economics provides the earliest macro data each month showing the on-the-ground reality in the worlds three biggest growth markets which together currently generate two-thirds of all global growth. Incomes of the People 3. The efficiency factor is the sixth ingredient of economic growth. 6 percent a year from 2015 through 2018. The long-run growth is determined by percentage of change in the real gross domestic product (GDP). Growth at the Frontier 5 1. 4 percent in the second quarter of 2019 from a preliminary estimate of 0. determined by the interaction of the supply and demand of investable funds at the global level. Unlike the role of energy in economic growth, studies have shown that there is a clear correlation between health and economic growth. The growth difference between investment-driven growth in Emerging Markets and often consumption-driven growth in the U. Indonesia: Economy | Asian Development Bank Google Tag Manager. In his celebrated work on the core factors influencing economic growth, Robert Solow (1956) isolated a key exogenous factor which. Census data is also an important consideration since shifts in population size due to births, deaths and migration are often associated with the size of the. Theory of Production and Growth 3. Particularly, total food production increase as result of technical progress, positive demand shifts, and increased availability of agricultural land. China’s transition has taken growth rates from more than 12 percent per year in 2010 to less than 7 percent by 2017. Economic growth is defined as an increase in the amount of goods or services an economy can produce, as measured over a certain period of time. Nov 09, 2019 (Heraldkeepers) -- Global roofing market has been segmented into asphalt, tiles, metal, concrete, and others. Competitors The recruitment policies. Economic growth can occur in an economy with many instances of equilibrium price if there are certain parts of the economy where supply must catch up to demand. The factors that have reduced net oil imports—decreased domestic petroleum demand, increased domestic oil production, more efficient vehicles, and increased use of biofuels—reduce the vulnerability of the U. In the case of the United States Federal Reserve, for example, real economic factors — growth and employment — are given equivalent weight. Economics, 1 & 2 Econometrics Economic Thought, History of Educational Audio, Videos Environmental Economics. The pickup in global activity is projected to be more gradual than in the October 2015 World Economic Outlook (WEO), especially in emerging market and developing economies. A key factor in enabling economic growth in the long-term is productivity. Fast-growing demand can lead to demand-pull and cost-push inflation - this leads to a conflict between macro objectives. China has adopted one-party-ruling political system where it is ruled by Communist Party of China. The recent rises in energy and commodity prices are partly explained by the rapid growth in demand from China and India. Economic growth is particularly important in developing economies. Supply-side factors (e. The automobile industry successfully converted back to producing cars, and new. Going forward, we expect the growth in. The most significant factor in rapid industrialization was the adoption of an outward-looking strategy in the early 1960s. Japan achieved sustained growth in per capita income between the 1880s and 1970 through industrialization. This is to be expected for an economy of China’s size, as compounding makes it harder and harder to deliver the same rate of growth from a higher level of GDP. Once it's clear which supply-side or demand-side factors are at play, local areas can move on to identifying the policy options available to them to solve each. Diagnosing the causes of poor economic performance is a critical step towards designing effective local policy and applies to all policy areas, not just property development. The Asian Development Bank (2007), using the growth diagnostics approach, identified the. Industries face a cycle of growth and contraction in its economy due to several factors. As distinct from the supply factors and demand factor of economic growth, the efficiency factor of economic growth is: A) 1 only. OECD countries can be divided into five groups according to their patterns of. Environmental policy contributes to a structural shift in the economy promoting growth and jobs associated with cleaner, more efficient products, services and processes. Improved public services. But for growth to be sustained and inclusive, its benefits must reach all people. Economic Indicators for Next 12 Months Point Down Business economists dial back expectations for GDP growth, corporate revenue, and hiring, among other key economic indicators. Only if its aggregate supply increases C. Economic demand depends on a number of different factors. Philippines: Economy | Asian Development Bank Google Tag Manager. Businesses are greatly influenced by the economic activities. In a war, when the channels of supply are cut off by the enemy or economic output is reduced for lack of labor power, the value of money tends to decline and goods prices rise even though the quantity of money may remain unchanged. EXAMINATION OF ECONOMIC GROWTH AND TOURISM IN BARBADOS: TESTING THE SUPPLY-SIDE HYPOTHESIS. And the average rate of economic growth across these top 10 metros was also negative, (-0. The Possible Causes• Increase in Total Demand – Can come from a number of sources – However this is a short term cause as once an economy is at full capacity no more can be produced• Improvements to the Labour Force – Improvements to Quality and Quantity will allow for long term economic growth through a rise in productivity. Definition of market forces: Forces of demand and supply representing the aggregate influence of self-interested buyers and sellers on price and quantity of the goods and services offered in a market. factors underlying economic growth. Evans, Esq. Economic Development. Factor mobility refers to… a. Without demand, no business would ever bother producing anything. Important research has been done in the area by Edward Denison. Japan’s economy slowed sharply in the third quarter as overall exports continued to fall amid trade tensions and a shopping splurge before a sales tax increase ran down stockpiles of goods. com - View the original, and get the already-completed solution here!. The rate of growth of. Growth makes the gap between unlimited wants and scarce resources less acute D. The long-run growth is determined by percentage of change in the real gross domestic product (GDP). The political stability of a nation is a vital factor in determining economic growth. Real GDPR growth for the Western Cape economy averaged 3. Results from an increase in aggregate demand without a corresponding increase in aggregate supply. de economist 126, nr. 4 (This is a. Total GDP growth +4. Determinants of growth are: four supply factors, one demand factor, and one efficiency factor. Keep in mind that a changing in consumption or government spending doesn't lead to more output in the long run if there is not an. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. For instance, as a result of economic growth in India the incomes of the people have greatly increased owing to the large investment expenditure on the development schemes by the Government and the private sector. What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve. Causes of Economic Growth. The current growth in developed economies—like U. Secondly, changes in house prices can have considerable effects on the rest of the economy. It is measured by the annual percentage rate change in a nation's gross. Together, supply and demand have a huge effect on prices. Pre Algebra. There are several factors affecting economic growth, but it is helpful to split them up into: For graphs and explanations, click the more button: Demand Side Factors Influence Growth of Aggregate Demand (AD) AD= C+I+G+X-M. The Park Place Economist is one of just a handful of undergraduate journals of economics in the world. Economics, 1 & 2 Econometrics Economic Thought, History of Educational Audio, Videos Environmental Economics. economy lost some steam in the third quarter. But economic factors have the most influence on long-term market performance. Supply refers to the amount of a product that's available for purchase. Real output is measured by Gross Domestic Product (GDP) at constant prices, so that the effect of price rises on the value of national output is removed. 4 (This is a. The report covers the 2019 scenario and growth prospects of the Saudi Arabia Oil and Gas market for 2020-2026. air traffic is primarily supported by cheap air tickets and higher living standards due to the expected recovery of the U. Secondly, changes in house prices can have considerable effects on the rest of the economy. This model primarily deals with capitalistic economies and their process of economic growth. No single factor explains this reversal of fortune. Demand for economists should come from the increasing complexity of the global economy, additional financial regulations, and a more competitive business environment. If there is spare capacity in the economy then an increase in AD will cause a higher level of real GDP. Some factors that can affect economic growth, and therefore employment rates, include incomes and wages, value of exchange rates, asset prices, consumer confidence and interest rates. Each of these factors is in turn influenced by a number of elements. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments. Economic growth is one of the most important indicators of a healthy economy. The tiles segment is expected to dominate the market in the year 2023. Al- though cultural and geographical factors may also matter for economic performance,. The latter two factors are especially important in the context of a world economy where a country's economic growth rate is materially affected by INTERNATIONAL TRADE influences. Research of Economic Growth in Papua New Guinea On the request of the Papua New Guinea Institute of National Affairs, the Jilin Province People's Government Research and Development Centre of China undertook research about the state of economic growth of Papua New Guinea as a project of aid to foreign countries. In supply-side economic models, automatic market adjustment mechanisms assure that there will be enough demand to purchase the economy’s potential output. Is it possible for an economy to continue growing forever solely by accumulating more capital? No. But for a country like New Zealand, with a. Development, however, is concerned with sustainability, which means meeting the needs of the present without compromising future needs. Various characteristics of urban growth or urbanization: A. In recent years, there has been no shortage of examples of governments abusing their powers to favor the ruling elite, their supporters, and a variety of special interests, with detrimental effects on regulation, public investment, the delivery of services, and growth. 4 First is the stage of the business cycle that the local or regional economy was in. This would be to try and encourage the growth of the economy and trading. Economic growth and political stability are deeply interconnected. Economic Growth (GDP) Economic growth which is measured by GDP change (%) is a key factor determining the demand of a Forex currency. production process of other sectors3; and (ii) indirectly, raising total factor productivity by reducing transaction and other costs thus allowing a more efficient use of conventional productive inputs. Each of these factors is in turn influenced by a number of elements. Among all the economic factors, development is the most important one, as a business has to cater to the demands of an economically dynamic society. But it’s not all supply. Some theories are complicated, and their application requires an elaborate tracing of cause and effect. Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. 2 days ago · Global oil demand growth is estimated at 0. Economic growth, a significant part of economics since Adam Smith’s day, declined in importance relative to the goal of promoting macroeconomic stability. Székely, Director for Economic Studies and Research. Factors of Production (Resources) There 4 factors of production, namely, land/raw materials, labor, capital and entrepreneurship. They slow it during the expansion phase of the business cycle to combat inflation. Technological Change and Innovation. Even in the absence of the supply-side constraints described in Section 3. Ceteris paribus is often a fundamental assumption to the predictive purpose of scrutiny. 9 percent over the period, compared to the national average of 3. Four factors are important in examining the relationship between transportation and economic development: (a) relevant type of transportation investment, (b) data necessary to analyze the economic effect of the investment, (c) appropriate methodology to analyze the economic effect, and (d) the proper dissemination of the results and education of. van schaik*. As the interest rate rises from i $ ' to i $", real money demand will have fallen from 2 to 1. But economic factors have the most influence on long-term market performance. 7 percent in Texas to 0. In 2011, recovery in world demand for diamonds led to robust economic growth. Higher economic growth leads to higher tax revenues. Some examples of economic growth are as follow:- Supply Factors These factors affect the value of goods and services supplied in an economy. One is the. Economic activity reflects a balance between what people, businesses, and governments want to buy and what they want to sell. Electronics waste production has been fueled by economic growth and the demand for faster, more efficient consumer electronics. Bureau of Economic Analysis. The Journal of Economic Growth serves as the principal outlet for research in the fields of economic growth and comparative economic development. In the previous chapters, we had studied some models of growth and development. 1 As long as economic growth is the norm, an actuary putting together a pension plan can be expected to reflect the expectation of. When the incomes of the people fall, they would demand less of a good and as a result the demand curve will shift downward. One of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). The Facts of Economic Growth C. Solow, 1956) with the added objection that the demand side of the economy was. But it’s not all supply. They also look at other factors that affect economic performance. Japan achieved sustained growth in per capita income between the 1880s and 1970 through industrialization. On the one hand, the uncertainty associated with an unstable political environment may reduce investment and the pace of economic development. necessary or good for economic growth, excessive inequality tends to lead to weaker economic performance. The sources are: 1. financial markets. The Park Place Economist is one of just a handful of undergraduate journals of economics in the world. Supply is the producer's willingness and ability to supply a given good at various price points, holding all else constant. Moreover, the factors that have driven the country’s expansion over recent decades will also have to shift in their relative importance. The growth in electricity demand has been significantly slower than GDP growth for decades. Â© 2013 Published by Elsevier Ltd. 2 Growth Over the Very Long Run 7 2. Chapter 17: Economic Growth McConnell/Brue: Economics, 16/e Page 516 Type: A Topic: 1 E: 309 MA: 309 3. Commerce Department's Bureau of Economic Analysis, which measures four areas of spending to arrive at the GDP: consumer spending, investment. The paper reviews and assesses empirical studies on the causal relationship between energy and growth, and energy demand in Ghana over the years. It is produced by the U. Percentage point contribution to real quarterly GDP growth, by component The Components of Growth Since 2009 GROWTH SINCE 2009 Source: Bureau of Economic Analysis. The journal's prime objective is to provide an international review of the state-of-the-art in economic modelling. Mathematical Models The most formal and abstract of the economic models are the purely mathematical models. There are obviously many factors that affect growth rates, some are more insignificant than others. An increase in the. The level of urbanization is considered as an index of economic development. If there is the development of new technology (computers, machines), it means workers will be able to do produce more. and economic growth depends on a range of factors. Cracks began to show in private consumption: Retail sales unexpectedly shrank in September and consumer confidence tumbled, while payroll gains slowed and wage growth weakened in the same month. Learn the different theories for what economists believe causes economic growth, including the differences between supply-side and demand-side economics. S may lead to a “fear factor” incorporated in such “global imbalances”. This will unlock rural. Japanese Industrialization and Economic Growth. Demand-side economics is first and foremost a means of ridding an economy of a recession and stimulating economic growth while preventing inflation. Following the economic crisis, countries which experienced significant recovery in 2010 took advantage of surging tourism demand, both domestic and international, to buttress the growth of all their economies. Volatility in world prices for essential imports and key exports. Changes in the real exchange rate affecting competitiveness. After the economy adjusts this year to the fiscal tightening inherent in current law, underlying economic factors will lead to more rapid growth, CBO projects—3. With the economy now picking up due to increased exports (X), improved job climate and rising wages, statistics on the labor market for the first quarter 2010 shows the total employment to have rose 36,500, which is 1000 slightly lower than 37,500 in Q4 2009. Second, growth is driven entirely by demand-side factors. Ageing could be an important factor on the demand side, but other factors may be more relevant for the development of health expenditure. 2 years for the economy to double. The consequence of ignoring structural breaks when they actually do occur in economic relationships includes parameter bias resulting from model misspecification. metro average (of 0. Sanctions on South Africa: What did they do? by Philip I. Reduced Unemployment. External Factors Affecting Recruitment. Growth makes workers less obsolete and more secure in employment B. Hundreds of empirical studies on economic growth across countries have highlighted the correlation between growth and a variety of variables. Energy Economics is the premier field journal for energy economics and energy finance. A boom is characterized by a period of rapid economic growth whereas a period of relatively stagnated economic growth is a recession. The latter two factors are especially important in the context of a world economy where a country's economic growth rate is materially affected by INTERNATIONAL TRADE influences. Some examples of economic growth are as follow:- Supply Factors These factors affect the value of goods and services supplied in an economy. Given good governance and appropriate laws, diamonds are a vital source of revenue for building infrastructure and essential social services such as hospitals and schools. The strength of an economy can go a long way to boosting the strength of the nation's currency. This is referred to as the output gap. new ideals for body mass and slimness. These factors affect the value of goods and services supplied in an economy. Tastes and Preferences of the Consumers 2. Thanks for watching, please subscribe If you need more help, check out my Ultimate. Introduction 2. Stynes Businesses and public organizations are increasingly interested in the economic impacts of tourism at national, state, and local levels. Further, wage aspirations for American workers are clearly at rock-bottom levels. The political stability of a nation is a vital factor in determining economic growth. 2 years for the economy to double. van de klundert and a. network goods. output as the result of interacting supply and demand factors - implicitly assuming that output will only be produced if consumers (domestic or international) wish to purchase it. Looking forward, we estimate GDP Annual Growth Rate in China to stand at 5. What are the demand and efficiency factors of economic growth? demand- government must purchase the economy's expanding output of goods and services. "External demand also weighed on new business growth. By expanding these industries, both the economy and the job market can grow. All these factors add to the downside risks and may lead to a more severe growth slowdown following the recent oil price shock. Factors affecting population growth.